Forget 'Fear Factor': Banks, Market Set to Soar

Comments from bank analyst Dick Bove on CNBC:

Bank stocks are offering compelling value—while the broader market is poised for substantial gains ahead, said analyst Dick Bove, who believes investors are too caught up in the "fear factor...."

That pesky euro zone debt crisis? It needs only to be removed from investors' consciousness for the market to get roaring again, he said.

"The fundamentals of the industry have never been better. It is only the unknown, unquantifiable, contagion risk which is keeping these stocks down," Bove said in a nearly euphoric note to clients. "Take this issue away and investors may realize that banks are massively oversold relative to the power of their balance sheets and their earnings potential...."

Trouble in Greece and elsewhere, Bove has long contended, will only strengthen American banks, which will get the business that European institutions lose....

Bove, in fact, says the U.S. will thrive in spite of itself and its many policy missteps.

"The United States may be in a 1969 to 1982 economy at present; it may be doing everything it can to pull down a very successful system," he said. "But once the European economies are stabilized, animal spirits will re-emerge in this country and the funds necessary for growth will pour out from every corner."

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Link: http://www.cnbc.com/id/47723931